7 Benefits of Becoming a Singapore Permanent Resident
Singapore is a country known for its thriving technology, impressive technological advancements, and diverse foreign talent from all across the world, so much so that foreigners are ready to pack their bags to work and live here.
Ultimately, every foreigner’s goal here is to obtain Permanent Resident status in Singapore because it’s a status that comes with a plethora of benefits, which we’ll discuss here.
Foreigners can choose to apply for work visas (i.e. Singapore Employment Pass, Personalized Employment Pass, S-Pass). Still, these don’t even come close to what being a Permanent Resident has to offer.
But you can’t directly apply for Permanent Residency either. You have to hold one of the work visas listed above and maintain employment in the country for at least 12 months before applying. This transition from work visa to PR status is made possible by the PTS or Professionals/Technical Personnel and Skilled Workers scheme. As of 2020, there are more than 521,000 permanent residents in Singapore.
You can read up more on how to apply for Singapore Permanent Residence here.
What is a Singapore Permanent Resident?
A Singapore PR is a residential status given to foreigners who want to make Singapore their second home. However, PR doesn’t equate to citizenship. Singaporean citizenship is in a different league of its own and has its criteria for eligibility and requirements.
What are the Benefits of Being a Permanent Resident?
Singapore is a powerhouse in Asia, from its thriving economy to its employment and entrepreneurial opportunities to its entertainment and lifestyle activities. It's no wonder that foreigners are eager to enjoy the benefits of becoming a PR here in this country.
Here are the benefits that they can enjoy once they become permanent residents:
Immigration Stability
One of the biggest perks of being a PR in Singapore is that you can live, study, work and even enjoy retirement here. You’ll only need to renew your PR status every 5 years. Combining a PR with a valid Re-Entry permit allows you to move in and out of Singapore without additional visas.
Because you’re a permanent resident, you also enjoy the living and employment standards afforded to Singaporean citizens not made available to the other types of visas.
Employment Stability and Entrepreneurial Opportunities
You don’t have to worry about reapplying for work permits as a permanent resident every time you change jobs. Reapplying for work permits is risky because there’s a chance of the application being rejected and forcing you to leave the country.
Singapore citizenship and PR do not come with these risks and will allow you to change jobs whenever. They can even take jobs from the government and take in more than one part-time job.
Singapore companies also prefer to hire citizens and permanent residents to avoid the bureaucracy involved in hiring foreigners and applying for the work pass. Companies with more local employees (i.e. citizens and PR’s) also have a higher quota to employ foreign workers (S-Pass and Work Permits), which many local companies are trying to achieve. If you’re an EP holder, employment changes will mean cancelling your current pass and applying for another once the new job is approved. This forces you to waste time and money during the transition.
Singapore permanent residents can also become entrepreneurs themselves or be nominated as directors for company registration.
Low-Cost Housing
Due to the lower stamp duty fee, PR's can afford to purchase a property. They only pay half the stamp duty compared to a foreigner. Of course, citizens pay less than half of what the PR is paying. Singapore PR's can also take advantage of better housing loans and schemes.
PR's can also buy HDB (Housing and Development Board) flats after three years, as long as the income does not exceed the maximum amount. Singapore permanency residency allows you to buy second-hand HDB houses or apartments since newer flats are only accessible to Singapore citizens.
Access To Central Provident Fund Plan
Central Provident Fund or CPF is a mandatory national savings program that requires both Singapore PR's and their employers to contribute. CPF is used to fund a pension for retirement and medical care, insurance, real estate purchases, and funding for selected investments.
Singapore permanent residents contribute a percentage of their salary into this savings plan mandated by the CPF Act. Your employers will also fund your CPF account, which is separate from the compensation you receive. You can also reduce the tax you pay since your taxable income is lower after CPF is deducted from your salary. Savings from lower taxable income is also very significant in the long run.
Note that CPF does not reduce your income per se but gives you a chance to increase it for the long-term. You won't be able to withdraw these funds until you're 52. If you renounce your PR and go back to your home country, you'll be able to withdraw the full sum of the CPF.
Easier Loan Application For Investments or Capital for Business
We mentioned that permanent residents could acquire housing loans easily from banks compared to EP and S-Pass holders. As a PR, you can also apply for loans to fund investments or to start a business. Your loans are approved within the minimum processing time with lower interest rates.
EP holders and S-Pass holders can apply for loans, but they have a higher chance of getting rejected, and processing time may take longer.
Access To Medical Services
Public medical institutions such as hospitals, polyclinics, and national centers are easily accessible to PR's because of the lower fees for medical services. They can also take advantage of the government's support by enrolling their children in infant care and childcare centers.
An Opportunity Towards Singapore Citizenship
Finally, you can use your permanent residency as a stepping stone to becoming a Singaporean citizen. Citizenship offers more benefits such as voting rights, better tax rates, and the ability to purchase subsidized housing that's not accessible to PR.
You also get a Singapore passport tied to your citizenship, and we all know how powerful their passport is.
You just need to be a Singapore permanent resident for 2 to 6 years and at least 21 years old at the citizenship application time.
Piloto Asia can help you with your PR application for Singapore.
What are the Barriers to Becoming a Permanent Resident?
There's no guarantee when it comes to applying for permanent residency in Singapore. You'll face these barriers before, during, and after your application.
Uncertainty Tied With Approval Chances
Applying for PR is a lot of work. It involves preparing essential documents and collating them in your way because there's no official way to do so.
Missing out on any of the requirements, or if the preparation is anything but done better, then your chances of approval are slim.
The approval rate since 2009 went down from 70,000 new PR's to 30,000 due to the stricter regulations in place. There's a reason why there's roughly 500,000 PR's in Singapore this year, and we won't be expecting any significant changes in the number any time soon.
The Process is Time-Consuming and Tedious
It takes months to prepare the documents and determine whether you're approved for the PR status. You have to check, re-check, and triple check your information provided and even then, a simple omission or error in input can cause rejection.
Closing
There's a lot of benefits offered by becoming a permanent resident in Singapore. The only downside is that there's no guarantee here that you'll get approved unless you have skills, expertise, and experience that's in demand by Singapore right now.
If you feel that the process might be too overwhelming, Piloto Asia can handle your application for Singapore Permanent Residence and other work visas.